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HRMA 6341
Information Systems
Technology Briefing: Videoconferencing

Team Willis
Rick Hawthorne
Dongmin Kim
Alberto Landero
Min Peryea
Stacy Seaberg
Yaxin Zhang
University of Houston
Spring 1998
History of Videoconferencing
Videoconferencing is just one of the latest developments in the history of telecommunications. The concept of telecommunication is based on the ability to transmit news and information through some distance instantaneously. As opposed to mass media technologies, such as radio and television, telecommunications consist of direct, point-to-point communication, such as telegraph, telephone and data transmission.
The history of telecommunications started around the 1830s with the invention of the telegraph. Later, in 1876, Alexander Graham Bell offered the telephone system to the world, and radically changed the concept of telecommunication. The telephone system as we know it was perfected with the development of dial phoning and the rapid expansion of its use during the 1940s and 1950s. The appearance of the most modern means of data transmission came with the development of satellite communications and the perfection (and better use) of telephone networks. Now, telecommunication networks not only transmit traditional voice or printed messages, but they can send images and television transmissions. This is what makes videoconferencing possible.
Videoconferencing first came into the picture during the late 1970s and the beginning of the 1980s, when businesses started to use microwave and satellite connections to conduct meetings between separate offices. For the first time, participants in such a long-distance meeting were able to see as well as hear each other. At the time, videoconferencing participants strictly had to gather in specially equipped rooms equipped with microphones and a number of television cameras and screens. The use of the telephone network for such transmissions was not even considered feasible.
The latest developments on videoconferencing relate to the use of telephone lines to transmit video and audio. The development of new technologies, such as ISDN lines has brought videoconferencing closer to all potential users. And the popularity of the system is destined to increase thanks to the use of desktop computers for video and audio connections through the Internet. The typical science-fiction dream of a videophone is closer than ever.

Videoconferencing: a Technology and Product Description
Videoconferencing is actually a combination of different technologies that together result in two-way audio and video communication. In terms of personal communications, it is the best next thing to direct personal contact. People communicating through videoconferencing can see and hear each other at the same time, which makes it the optimal medium for distance communication.
As mentioned before, videoconferencing cannot be considered a technology in itself. One can create a videoconferencing system by putting several pieces of equipment together to allow for the transmission of audio and video between two or more distant places. These machines are the actual pieces of technology that allow us to have videoconferencing. Although most people think of televisions when talking about videoconferencing, other machines such as computers are now being used for this purpose.
Simply stated, a videoconferencing system must have audio-visual equipment and a medium for transmitting the information from one place to another. The audio-visual equipment basically consists of:
This equipment is in turn connected to a system that transmits and receives signals from the sites that have established communication. And it is here when the complexity of videoconferencing comes in.
The challenge for any kind of transmission system is strictly related to bandwidth and speed of transmission across different media. Bandwidth refers to the amount of information (or bits) that can be transmitted along a specific medium every second. As more bits can be transmitted per second the speed of the system and the quality of the transmission are increased. However, the cost of a system also goes up with its ability to transmit more bits of information.
The original videoconferencing transmission systems were based on microwave and satellite communications to connect the two sites. This type of transmission has a high bandwidth, which allows for very high quality transmissions. The main problem with it is the high expense of maintaining a satellite network and the cost of other pieces of equipment related to the system (such as antennas). Very few companies or educational institutions could actually afford such a system when having to communicate across considerable distances. Another shortcoming of this system is the fact that video can only be transmitted one way (one-way video, two-way audio), which limits the interactivity component of the system.
In an effort to increase the use of videoconferencing and make it more accessible to the public, new transmission technologies had to be created. The most accessible and viable alternative was to use the telephone network. However, the problem of the low bandwidth of normal telephone lines had to be overcome. Video transmission requires 234,375,000 bits of information to be sent through a medium every second. Normal telephone lines are now able to transmit about 56,000 bits per second (normal voice connections are 2,400 bits), which still falls short of the video requirement. An alternative is ISDN (Integrated Services Digital Network) lines that perform better, offering a transmission capacity of 64,000 bits per second (64 kbps). The ultimate alternative would be a fibre optic connection, which has very high bandwidth and will allow for normal video transmission. However, both ISDN and fibre optic connections require the development of new cable networks to connect the system. The expense is usually prohibitive for most potential users, especially for fibre optics. ISDN lines are becoming more popular, however, because phone companies can hook them up to business facilities and residences fairly easily. In addition, they may become the standard telephone system in the near future. Fibre optics are also being installed by many telecommunication companies, which envision their use as a backbone for the telephone system to which regular phone or ISDN lines will be connected. This will increase the transmission capacities of videoconferencing systems.
The problem of bandwidth and transmission through regular or ISDN lines has been solved with video compression technology. The piece of equipment that performs this important task is known as CODEC (Compression and Decompression component). The CODEC reduces the bandwidth required for the transmission by compressing the images. The process is described in the videoconferencing page of the University of Manchester:
"A video signal changes 25 times per second, [but] not all the picture changes in each frame and so with a compressed image only the changes are sent. Thus the more changes, the less compression that can occur. Compressed video can be squeezed into as few as two telephone lines, or up to 24. The greater the compression, the greater the loss of clarity, continuity of motion and color information."
At the receiving end, the CODEC decompresses the signal transmitted and sends it thorough regular connections to the monitors. There are various levels of compression that can be used depending on the type of conference that wants to be established. Compression to 64 kbps is sufficient for DeskTop Computer Videoconferencing (DTVC). Most systems require group videoconferencing, and this system needs transmission capabilities between 128kbps (two channels or telephone lines, each at 64 kbps) and 2 Mbps (mega-bits per second). Higher quality transmissions such as Digital Broadcasting and High Definition Television require higher compression systems, which are also far more expensive.
Many high-tech companies have obviously seized the opportunity to develop CODEC equipment and other systems that make videoconferencing possible. To ensure that all these different systems are compatible, two videoconferencing standards have been established:
The great advantage of using this compression system through the telephone network is that it allows for two-way audio and two-way video conferencing. This establishes a visual connection between the meeting or conference participants. There can actually be a connection between multiple sites. It also supports the use of several types of media, such as video players and computer graphics. Some systems even allow for application sharing and transmission of documents. Subjects in the meeting can work on the same document simultaneously.
This type of system makes videoconferencing a truly interactive experience. If used wisely by businesses, educational facilities and other users, it can result in considerable traveling cost savings and greater efficiency when trying to coordinate efforts between groups of people located in different geographic places. The strengths and weaknesses of videoconferencing are discussed later in this paper.
Videoconferencing equipment can be acquired in different types of product packages. The most common are group and desktop videoconferencing equipment. Businesses have the option of developing specialized facilities for group videoconferencing (i.e. having a special room with all the equipment in it), or acquiring "portable" equipment that can be transported to different meeting rooms if the circumstances demand it. Desktop videoconferencing consists of special pieces of equipment and software that are installed on computers to allow for individual video and audio contact between two persons.
As mentioned before, many different technology companies are dedicated to the production of videoconferencing equipment. Compression Labs, Inc, or CLI, is a well-respected manufacturer of CODECs. CLI CODECs, in conjunction with other pieces of equipment are perfect for companies that want to have a separate facility for videoconferencing (a special room). For more information on CLI equipment, you can visit the page of
Vantage Systems, an official distributor of CLI products.Some companies have focused on the development of more flexible and user friendly videoconferencing equipment. They try to make videoconferencing more accessible for all potential users. A perfect example is
PictureTel, a company offering a variety of videoconferencing product packages. PictureTel offers flexible group videoconferencing products, ranging in quality and price from the Concorde 4500 to the Venue 2000 Model 50. In addition, the company has developed PC videoconferencing systems, such as the Live 200 Series. This system works under windows, and offers application and document sharing between users. PictureTel offers many other products, which can be admired by visiting their Internet page.Other companies offer very similar products. The offerings of CLI and PictureTel are presented as two examples of branded products out in the market and available for companies to take advantage of the benefits of videoconferencing.
Videoconferencing: Strengths & Weaknesses
A. Strengths:
Videoconferencing is a powerful communications tool that no company can afford to be without in today's information-driven age. Business television networks have particular application for companies that have long struggled with such issues as employee training, education and motivation (Anonymous, 1995).
Videoconferencing improves communication, saves money and saves time. The cost savings are obvious -videoconferencing is cheaper than alternative methods for face-to-face communications such as travel, or moving employees to remote work sites. It also can satisfy the need for global groups to work together. The uptake of the technology appears to have accomplished these objectives within many companies (Thompson, 1994).Because of an improving and more accessible infrastructure, high-quality images can be sent and received. Due to a decrease in prices of videoconference equipment and the necessary network facilities, a lot of companies discover the benefits of this method of communication. Videoconferencing can be used in just about any situation that would warrant a meeting. These include weekly staff meetings and presentations to prospective clients. Creative sessions, bargaining sessions and training sessions can also be delivered via videoconferencing. A videoconference system is an efficient solution to many things. Some other benefits of videoconferencing are:
Perhaps the biggest advantage of using videoconferencing systems is that they often incorporate and easily integrate with other vital business technologies like spreadsheets and presentation software. And with recent technology breakthroughs, all this is becoming absolutely simple, obviously useful and quite affordable (
3M Meeting Network). Videoconferencing also increases the speed of decision-making. Business is conducted mush more quickly than it was even a few years ago. The market cycle - the time from concept to delivery of a good or service - has shortened. At the same time, customers are expecting a higher level of personalized, customized service. Companies will turn to videoconferencing as a way to bring products to market faster and to better serve customers (Anonymous, 1997).
Videoconferencing as a technology does have some weaknesses. Meetings are easier to schedule and conduct with videoconferencing, but therein lies the danger. Companies could experience a dramatic rise in collaboration with no immediate, tangible benefits to the business. Meetings, whether traditional or electronic, should be conducted to achieve meaningful business goals (Alesandrini, 1994).
The following are easy to make mistakes in videoconferencing:There are a number of network infrastructure issues that also need to be considered when evaluating the appropriateness of this technology for an organization. The problem is that video/audio applications require a very predictable, low-latency, continuous flow of data, or quality of service. In existing network infrastructures, a conferencing node attached to a LAN must wait either for a token to arrive, or compete with other nodes for Ethernet access (Lounsburg, 1997).
As videoconferencing hardware and operating costs have dropped, businesses have taken more and more interest in videoconferencing as a way to reduce travel expenses and retain executive on-the-job availability. If videoconferencing can replace face-to-face meetings, it will enormously increase executive productivity and seriously harm the travel industry. If it cannot, businesses may spend large sums of money on just another fad. As with any investment and change in the way a company does business, it is important to weigh the benefits against the cost. Videoconferencing initial start up costs are still considerable. A typical videoconferencing installation requires a camera, microphone, monitor and speaker, and maybe most important a CODEC. The traditional setting for videoconferencing is still a conference room or dedicated custom room, specifically designed and equipped for videoconferencing.
Videoconferencing simply is not the same as being there. If there is a universal drawback to videoconferencing, it is the loss of body language feedback. On the technical side, problems range from hitting the wrong control to using the mute button to shut off dissenting viewpoints.
Here are some suggestions of how to excel at videoconferencing:
Real World Applications and User Experiences
1. Videoconference in Distance Education:
The world is redefining the traditional means of gaining and providing knowledge. The rapid pace of change created by the convergence of social, political, economic and international pressures has given rise to a need for continuing education throughout the public and private sectors. The traditional education methods can no longer fulfill the need of the new tidal wave of "non-traditional" students. The education system is challenged with providing increased educational opportunities without increased budgets. Many educational institutions are answering this challenge by developing distance education programs. It can provide adults with a second chance at a college education, reach those disadvantaged by limited time, distance or physical disability, and update the knowledge base of workers at their places of employment.
Within the past five years, compressed digital video teleconferencing has paved the way for inexpensive two-way and multi-point interactive classes worldwide (
ILR's Distance Learning Resources, by Jon Levy). Before this, the only alternative for live two-way and multi-point video was expensive satellite technology. Now the same outcomes can be achieved for a small fraction of the cost, opening the door for innovative new ways to provide educational services.Videoconferencing could be used to facilitate the best of distance and conventional teaching. Distance learning is normally associated with more class materials and better preparation of teaching materials than conventional lectures and face to face meetings. Video conferencing provides a means to get both students and tutors to a central location, all be it virtually. Video conferencing could lead the way for a dual approach, giving students more responsibility for their learning, working in groups, doing tasks, all of which would benefit conventional teaching, but video conferencing provides an opportunity to implement them (
Institute for Computer Based Learning, Dr. Lynne Coventry, Heriot Watt University, Edinburgh, Canada)Interactive Videoconferencing (IV) is an effective tool to be used in distance education settings. This system can be integrated into the distance education program with minimal adaptation to the curriculum and course and is designed to support two-way video and audio communication between multiple locations. Most IV systems utilize compressed digital video for the transmission of motion images over data networks such as high capacity Integrated Services Digital Networks (ISDN).
Interactive video can be effective because:
As with any technology, interactive video has its limitations:
Boston University's school of Engineering developed a program to satisfy the needs of part-time students in industry called the Interactive Compressed Video (ICV) graduate program (
Interactive Visual Distance Learning: Boston University, AT&T Global Business Video Service). The test class was implemented on AT&T lines between BU and Hamilton Standard, a United Technologies Corporation (UTC). It allowed comparison of Switched 384 KBPS and 112 KBPS services, with the outcome that Switched 112 KBPS offered appropriate video quality at the most reasonable cost. The pilot was a huge success. BU's customer was so impressed with multipoint ICV that during the first semester BU was offering it, they asked BU to increase ICV programming to include the entire curriculum of the Master's Program. This plan was immediately adopted. Today, eight different courses per semester are offered to all BU distance learning students who have access to ICV. In a recent development, Boston University College of Engineering is offering two courses from the School of Management, one in Managerial Accounting and another in Operations Management.Boston University's ICV program is managed through an organization called Collaboration for Interactive Visual Distance Learning (CIVDL). The CIVDL represents the cooperative efforts of academic institutions and industrial organizations to provide meaningful graduate-level engineering courses on-site to technical professionals by means of ICV. Six leading research universities and four high-technology corporations formed CIVDL. Founding educational institutions include Boston University, Columbia University, Howard University, Massachusetts Institute of Technology, Penn State University, Rensselaer Polytechnic Institute, and Stanford University. Founding corporations include 3M Corporation, AT&T, PictureTel Corporation, and United Technologies Corporation. CIVDL's start-up offering included more than 50 graduate engineering courses broadcast from member universities and an ongoing Distinguished Lecture Series broadcast on a rotating basis from member universities and corporations. All courses in the CIVDL catalog are accessible from respective member institutions through dial-up videoconferencing at the worksites of participating corporations. The collective curriculum matrix provides broad opportunities for working engineers to earn a Master of Science degree from member institutions in most engineering majors and in a number of related sciences (
Interactive Visual Distance Learning).Graduate Health Systems (GHS) is a Pennsylvania corporation with seven hospitals, a health maintenance organization, and several other health care units. To provide continuing medical education to GHS's physicians across sites in Pennsylvania and New Jersey, the organization began using a two-way videoconferencing system in 1992 (
Continuing Medical Education By Two-Way Video, Scott Rex, Continuing and Distance Education, University of Wisconsin-Extension). The system consists of nine two-way PictureTel videoconferencing units installed by AT&T at each hospital, the HMO, and corporate headquarters. The compressed video transmits at 384 kb/s. GHS uses the system for both point-to-point and multipoint conferences, with an AT&T Multipoint Control Unit (MCU) or videoconferencing bridge allowing a maximum 12-site conference. The two-way video system saved the travel dollars, generated the patient referrals, created a greater cohesion among GHS physicians, and increased the opportunities of continuing medical education being provided to the physicians.Until recently, videoconferencing had been the province of dedicated systems housed in special-purpose viewing rooms. But since the development of software packages such as CU-SeeMe, Iphone and Netmeeting, desktop videoconferencing has become more widely accessible through networked personal computers. Students from approximately 40 elementary and secondary schools are now incorporating videoconferencing into classrooms (
Videoconference for the Rest of Us, Mark Hodges). For example, a grant from the National Science Foundation to support the Global Schoolhouse Project has enabled language and science classes at Rocky Run Middle School in Chantilly, Va., to use CU-SeeMe. One class practices Spanish language skills by helping a group of professors and graduate students from Barcelona test a multimedia computer game. Another class has received textual references and graphics materials for reports on rainforest medicines and other scientific topics from medical faculty members at the University of Otago in New Zealand. Desktop videoconferencing is helping students improve their personal confidence and conversational abilities as well as their research skills. As the technologies of desktop videoconference develop, the future of distance learning will be cheaper and more popular.2. Videoconferencing for Education and Business:

The University of Houston boasts an advanced Videoconferencing facility housed in the facilities of the Conrad N. Hilton College of Hotel and Restaurant Management. As described by mark Hamilton, the Director of Information Services of the college:
"The Don Sanders and Kathy Sanders Interactive Studio for Global Education was established to provide videoconferencing capabilities in credit and non-credit education and training programs within the Conrad N. Hilton College of Hotel and Restaurant Management. Additionally, the studio provides clients of the University Hilton Hotel and Conference Center with the ability to hold videoconferences in one of the finest facilities in the city of Houston."
Based on this introduction, it is clear that this particular facility can serve both for educational and business purposes. Its location in the University of Houston allows faculty and students to organize videoconferencing sessions with other universities nationally or internationally. On the other hand, the Sales Department of the University Hilton Hotel can offer the videoconferencing services of the facility to clients hosting conferences and meetings at the Hotel. In this sense, the videoconferencing facility becomes a profit center for the hotel.
The videoconferencing equipment is located in one of the many meeting rooms available at the University Hilton and Conference Center. The facility is quite impressive. The room has a seating capacity of up to 24 people, plus a control podium for a lecturer or meeting conductor. This podium is located at the front of the room, facing the audience, and it allows the lecturer or meeting conductor to control the different pieces of equipment that make the videoconferencing session possible. It is this equipment that makes the facility so dazzling:

As it can be inferred from this comprehensive list of equipment, the investment on this facility was considerable. Without consideration to the cost of physical space, the conditioning of the room and the purchase of all the equipment necessary required an investment of almost $100,000. However, the Conrad N. Hilton College can now take pride in having one of the vest videoconferencing facilities in Houston. Also, the effort to market the facility to meeting planners using the hotel's conference and meeting space may allow the college to recuperate the investment in the future.
At the moment, the main costs of operating the facility come from transmission charges made by the phone company. There is a base rate per channel used (64 kbps per channel), plus additional bridging charges if necessary. Bridging is required to make the transmissions from one type or brand of equipment compatible with other machines that may receive or originate the signal. If the two systems are originally compatible, bridging is not necessary, and the college is not charged. Finally, there are also usage charges per minute of connection time (such as normal long distance telephone billing).
When used for commercial purposes, the use of the facility is charged at $266.00 per hour by the sales department of the University Hilton Hotel and Conference Center. There is a minimum requirement of four hours of usage. Transmission charges can also apply when the transmission is originated from this facility (in other words, when the phone company charges the hotel for the use of the line). If this site is "answering" the call, the transmission charges are not applicable. In fact, the management of the facility encourages that the videoconferences be conducted in that way, with the purpose of avoiding rebilling customers a month after the meeting is conducted when the charges from the phone company are finally received.
Currently, the facility is being used more form University and business meetings than for classes or lectures. More specifically, the facility is being used for the following purposes:
The management of this facility is very proud and takes good care of it. It recognizes that it can still be used more frequently to justify the investment made. Perhaps when stronger marketing efforts are conducted to increase awareness of its existence among the business community of Houston, this videoconferencing facility may become an important profit center for the University Hilton Hotel and Conference Center. Although this facility is not totally profit oriented, it always strives to at least break even, and this facility can further support that effort.
3. Videoconferencing as a Tool in Corporate Structural Change:
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Company Profile
:Marsh & McLennan Companies is a professional services firm with insurance and reinsurance brokerage services, investment management and consulting businesses. More than 27,000 employees worldwide provide analysis, advice and transactional capabilities to clients in over 80 countries.
For purposes of this study, we will focus on Marsh & McLennan, Inc. (MMI) which is the insurance brokerage arm of Marsh & McLennan Companies (MMC). MMI provides consulting, brokerage and placement functions for major corporations for the insurance and reinsurance needs of their Risk Management programs.
Until four years ago, MMI was a very decentralized organization. Each individual office was a separate profit center. A typical Account Team for a major client was composed of the following individuals:
Each member of the Account Team was based out of the local office, which serviced the client. For example, each member on the Compaq Computer Corporation Account Team was a Houston office employee. Each member of the Coca-Cola Account Team was an Atlanta office employee. This Account Team structure had worked well for many years. Insurance brokerage in the late 80s through the early 90s was a transaction driven profession. It had always been a "relationship" business, just as law firms, CPA firms, and other consulting firms. Major corporations spend several million dollars per year on their Risk Management programs; thus the ultimate decision-maker within the client's organization can go as high up as the Executive Officer group. At this point in the decision making chain, and for this level of capital expenditure, face to face contact with the consultant is mandatory. Being face to face in front of the client lends a comfort level that is not attainable in a conference call. The local account teams were able to provide local "hands on" service to the client. This generally meant that the client had at its disposal, any day of the week, access to the players on their MMI team.
Corporate Restructuring:
Several years ago, MMI began looking at ways to add value through the consulting function for their clients. After many months of studying the organization through strategy sessions and reorganization planning teams, they realized that they could "add value" by sharing Human Resources within the organization. They first segregated their clients into broad categories. Some of these categories included Healthcare, Energy, Transportation, Retail, Services, Technology and Financial. Next they surveyed their employees, both domestic and internationally, to find key people with significant experience and specific industry knowledge for each of the business categories. These people were then singled out of their individual offices/client responsibilities and designated as Corporate wide "Industry Specialists" for their respective areas of concentration. The idea was that each client would retain their local service team for day to day activities and gain access to special consultants with specific expertise in the client's line of business.
This new organizational structure posed geographical difficulties for those designated as the industry specialists. These key people found themselves needing to be in different places at the same time. They were constantly traveling, which caused dual problems - both an increase in travel and entertainment costs as well as being "out of pocket" for other clients' needs.
Vendor Selection:
MMI felt that videoconferencing would be a viable alternative to continuous traveling for its industry specialist resources. The idea was to put the industry specialist face to face with the client and the client's Account Team. This would enable the company to get more utilization out of its new structure and keep the same "human element" ingredient that had always been a part of the process.
In 1994, Steve Berk, MMI's Regional Advisor for the West, was charged with researching vendors for a company wide rollout of videoconferencing capabilities. Mr. Berk formed a five member task force and began looking into the various options.
After several weeks, the task force had narrowed their options to two vendors: PictureTel and Compression Labs Inc. (CLI). Both companies offered comparable products in the same price range. However, CLI also agreed to move their insurance program to MMI. This arrangement seemed to work well for everyone involved, so the final decision was made to go with CLI and a contract was signed between the two companies for CLI to be MMI's global vendor for videoconferencing hardware.
Hardware & Technical Specifications:
MMI purchased eleven machines from CLI. These machines basically looked like a glorified 27" television with a camera device mounted on top of the television. The television monitor was mounted on a rolling cart, which housed the specialized computer that ran the videoconferencing machine. The entire device could be rolled around in an office from conference room to conference room.
According to Paul McPherson, MMI LAN Administrator in Dallas, the CLI machines were very user-friendly. Each conference room that was to be utilized for videoconferencing was made "videoconferencing ready". This meant that the wiring for the machines had to be installed and the lighting and background noise adjusted. Once this was completed, and the machines were delivered, they were ready to begin inter-office demonstrations on how to use the equipment.
Costs:
In 1995, when the original eleven machines were purchased from CLI, the cost per machine was approximately $30,000. Average costs per point-to-point videoconference were approximately two times the long distance charges for a regular call between the same two cities. Multi-point videoconference calls were charged a flat rate per connection by the long distance carrier. MMI had the option of purchasing "bridge" capabilities in order to make the multi-point calls on their own without the assistance of an outside long distance carrier. The purchase price for the bridge would have been $150,000 plus additional per usage charges. MMI decided to outsource the bridge function each time they needed to make a multi-point call instead of having the capability in house.
Outcome:
After two and a half years of the rollout of videoconferencing in eleven North American MMI offices, Steve Berk says, "It hasn't been a total failure..." They ran into several problems after the rollout. First and foremost, they had a difficult time getting MMI employees to utilize the technology. Comments taken directly from an employee survey done one year after the rollout included:
Another aspect that the task force failed to take into account was the "schmooze" factor. Insurance brokerage has always been a "people" business. Client dinners, lunches and golf outings are part of the deal. These three things are difficult to do through a television screen. Clients expect a certain element of wining and dining and doing business through the advanced technology of videoconferencing took away the human relations part of the client relationship. Another problem is the same old adage, "You can't teach an old dog new tricks." Many MMI employees simply were afraid of the technology; very similar to the fear of the first personal computer installed in their offices.
On a positive note, those that did embrace the technology have found it to be a useful tool in dealing with both clients and other MMI personnel. One MMI employee said:
"I have used it several times to hold a one or two hour meeting with New York. The total cost of a videoconference call to New York for one or two hours is significantly less than the airfare, hotel and miscellaneous costs I would incur if I had traveled to New York for the two hour meeting; not to mention the value of my time out of my office."
The Future of Videoconferencing at MMI:
Although videoconferencing has not been an overwhelming success at Marsh & McLennan, Inc., the project will not be abandoned. In fact, MMI is currently in the process of purchasing a second group of videoconferencing equipment for 20 more North American offices. In two and a half short years, the technology has advanced to a point that MMI can buy comparable machines to their current CLI machines for a per unit cost of $8,000. This is quite a significant decrease from the original $30,000 per unit cost.
MMI will continue forward with the stand-alone machines, but they are already looking to the future of desktop videoconferencing. Both Steve Berk, his task force, and Senior Management feel that when the technology advances to the point that it is as easy as point and click, this is when MMI will feel the advantages gained through this information technology.
Future Uses of Videoconferencing
When you bring up the topic of video-conferencing, many people still think of futuristic science fiction shows. Today, that view is no longer valid. Andy Pargh, one of the nation's best new product reporters referred to the ViaTV Videophone by 8x8 Inc. as the "Best Use of a Television" in his new book The Gadget Guru's Guide to the Best.
"Videophones have become a reality, " writes Pargh. "Videophones are ideal for those who desire visual contact with friends and loved ones that reside in another city or for grandparents to keep an eye on their grandchildren. They are also an inexpensive and effective method of video-conferencing for businesses."
The technology is here and it is available at an affordable price. Over the past decades, we have developed numerous remarkable innovations that have drastically improved our standard of living (Color TVs, VCRs, personal computers, CD players, fax machines, cellular phones, and the Internet.) Each of these inventions was at one time considered to be impossible to build or too expensive for anyone to afford. History has proved that the development of these goods and services was not only possible, but they could be provided to consumers at an affordable price. What will be the next innovation that will be widely adopted by the mainstream public? Perhaps videophones for home and business use will be the next significant innovation. In ten years, videophones could be as common as personal computers and VCRs.
Currently, videophones are poised to penetrate the consumer market. They are capable of using the current telephone lines and/or ISDN lines for higher quality video capabilities. With recent developments that have made videophones available to consumers at an introductory price in the $300 - $700 ranges, major retailers are planning to offer this type of product. These retailers include Staples, CompUSA, Office Max, and Best Buy. The $300 - $700 price range may seem high for a sophisticated telephone, but history has shown that the price of consumer electronics products are significantly reduced after their introductory period. Some examples of products that were introduced with a premium price tag are VCRs, CD players, and cellular phones. All of these products are now available at easily affordable prices. Therefore, these videophones should be available at a price that the average consumer can afford in the near future. The widespread acceptance and compatibility of videophones is extremely important because the visual aspects can only be delivered if each person has the videophone equipment.
In our society, there are several non-verbal aspects to our conversations. We communicate much of our conversations through body language, voice inflections, and facial expressions. "A picture is worth a thousand words." Videophones add the visual aspect of communication and enhance the usefulness of our current telephone system. There is the obvious benefit of the visual aspects of a conversation being displayed, but there are several more subtle benefits that are provided by the videophones.
For deaf and hard-of -hearing people, the videophone will provide a tremendous convenience by replacing the current TTY systems. The primary form of communication for the hearing impaired is American Sign Language, but sign language can only be a viable form of communication over telephone lines with the use of videoconferencing. Until now, they have had to use a TTY system to communicate with anyone via telephone. With the TTY system, both users must have the equipment that makes the communication possible. The TTY system is a text only form of communication, which further limits the channels available for conversations. This form of communication is similar to being in a chat room on the internet. The videophones that will be available to the consumer market will provide the hearing-impaired users with the ability to visually communicate with another person who has compatible videoconferencing equipment.
The health care industry can also use the videophone, which is equipped with data ports, to administer tests and monitor a patient's health. The patient can receive these benefits without the hassle of driving to a clinic or the high expense of home healthcare. The videophone will allow healthcare providers to deliver disease management care from a central location. C-Phone Corporation has recently been selected by Strategic Monitored Services, Inc. to provide videophone capability for Home Telehealth Disease Management for military beneficiaries.
According to Gregory Muth, CEO of Strategic Monitored Services:
"This application proposes to demonstrate an innovative health care delivery platform that can positively change and affect health care for the Department of Defense and the private sector. By creating a Nurse Care Center, clinicians based hundreds of miles away will deliver disease management services using interactive voice, video and data, directly to the home of a chronically ill patient with the patient's television set and existing phone line."
Some videophones are equipped with features that allow the user to call home from a remote site and electronically control the camera to scan the room where the videophone is located. The scanning function is combined with the auto answer capability to adapt the videophone for use as a security monitor.
The videophone is an interesting new innovation that is capable of providing numerous benefits. In our society, we have continually shown interest in new electronic gadgets, and we have demonstrated the willingness to spend discretionary income on devices that are conceived to improve our quality of life. For this reason, the videophone appears to have a bright future in the consumer electronics market.
References